GMX vs Kwenta: Synthetic Perpetual Contracts in the DeFi Space

GMX and Kwenta are two protocols in the DeFi space that offer synthetic perpetual contracts to users. GMX, with its pool-based model, offers trading against a liquidity pool without order-book slippage and features oracle-based pricing. It has over 100 perpetual contracts available at up to 100x leverage and is live on several chains, primarily Arbitrum.

However, GMX has some drawbacks. Its fees are higher than those of its fee-free competitors, which can weigh on longer holding periods. Additionally, the protocol's dependence on oracle pricing poses a structural risk factor. Furthermore, GMX does not have EU authorization.

Kwenta, on the other hand, is a protocol acquired by Synthetix and offers access to synthetic perpetuals from the Synthetix ecosystem. It has more than 40 tracked assets and retains existing trading functionality during the transition. However, Kwenta's fees are significantly higher than those of GMX, ranging from 0.25% to 0.3% per trade.